The Employees’ State Insurance Corporation (ESIC) has introduced the New Amnesty Scheme 2025, approved during its 196th meeting on June 27, 2025. This scheme helps reduce litigation, settle disputes out of court, and build trust between ESIC, employers, and insured persons. It is active from October 1, 2025, to September 30, 2026, under the Employees’ State Insurance Act, 1948 (ESI Act).
Purpose of the Scheme
- Offers a quick and fair way to resolve old disputes.
- Reduces legal burden and backlog of cases.
- Encourages compliance without lengthy court proceedings.
- Improves transparency and operational efficiency.
Eligibility Criteria
- Employers with pending cases under Sections 75, 82, 84, 85, and 85A of the ESI Act.
- Insured persons with disputes over incorrect declarations.
- Certain petitions under Article 226 related to Sections 75 and 82, provided they do not involve major legal questions.
- Employers who registered voluntarily using Form-01 are not covered.
- Those who benefited from previous amnesty schemes can still apply.
Key Features of the Scheme
Settlement of Court Cases Related to Coverage
- Units closed for more than five years as of March 31, 2025, with cases pending for over five years and no prior assessment, can settle without damages.
- Operational units must provide records to validate coverage. If verified, no damages will apply.
Settlement of Contribution Disputes
- Employers must get court permission where needed before settlement.
- Payment includes both employer and employee contributions plus interest.
- If records are missing, alternative evidence like EPFO or income tax documents can be used.
- If no evidence exists, ESIC may accept 30% of assessed contributions.
- Damages are generally waived.
Disputes Over Levy of Damages
- If contributions and interest are paid but damages are disputed, pay 10% of the damages amount to settle.
Withdrawal of Prosecution Proceedings
- For insured persons under Section 84, withdrawal is possible after refunding excess payments and giving an undertaking for future compliance.
- No interest on refunds.
- Criminal conspiracy or forgery cases are excluded.
- For employers under Sections 85 and 85A, withdrawal after payment of contributions and interest. If dues are cleared, cases are withdrawn automatically.
Extended Categories for Older Cases
- Cases older than 15 years with dues up to ₹25,000 (excluding interest and damages) may qualify for withdrawal.
- Closed units or untraceable employers can settle easily.
- Operational units must pay 30% of contributions plus interest.
- Cases for failure to submit returns under Section 85(e) can be withdrawn after payment.
- Disputes over late declaration forms can be settled if compliance is complete and the case is pending for more than three years.
Application Process
- Submit Annexure A with details of employer or insured person, case particulars, and proof of payment or compliance.
- Get court approval where required.
- ESIC committees at field level will review applications.
- Settlements processed within six months.
- Regional Directors and designated officers will approve cases.
- Applicants must give an undertaking for future compliance.
Important Dates
- Start Date: October 1, 2025
- End Date: September 30, 2026
- Apply within this period to avail benefits.
Why Apply Now?
- Limited-time opportunity to resolve disputes.
- Avoid extra penalties and damages.
- Save time and resources by avoiding litigation.
- Build a better relationship with ESIC.
Final Thoughts
The New ESIC Amnesty Scheme 2025 is a practical way to clear old disputes and ensure compliance. Employers and insured persons should check eligibility and apply before the deadline. For detailed guidance, refer to official ESIC documents or consult a professional advisor.
FAQs on ESIC Amnesty Scheme 2025
1. What is the duration of the scheme? The scheme runs from October 1, 2025, to September 30, 2026.
2. Who can apply under this scheme?
- Employers with pending cases under Sections 75, 82, 84, 85, and 85A of the ESI Act.
- Insured persons involved in disputes over wrongful declarations.
- Certain petitions under Article 226 related to Sections 75 and 82, provided they do not involve major legal questions.
3. Are employers who registered voluntarily on the ESIC portal covered? No, employers who registered by submitting Form-01 voluntarily are excluded.
4. What if an employer does not have records for assessment? ESIC may accept a minimum payment of 30% of assessed contributions or use alternative evidence like EPFO or income tax documents.
5. Will ESIC waive damages? Yes, in most cases damages are waived. For disputes only about damages, employers need to pay 10% of the determined damages amount.
6. Are criminal prosecutions against insured persons included? Yes, prosecutions can be withdrawn if excess payments are refunded (without interest) and an undertaking is given to avoid false declarations. Cases involving criminal conspiracy or forgery are excluded. Long-pending cases (over five years) with unknown whereabouts can be withdrawn unconditionally.
7. Can employers who used previous amnesty schemes apply again? Yes, prior beneficiaries are eligible under this scheme.
8. What documents are required for application?
- Annexure A with applicant details and case information.
- Proof of payments and compliance.
- Court permission for out-of-court settlements where applicable.
9. What are the benefits of participating?
- Faster dispute resolution.
- Reduced penalties and damages.
- Restored compliance status with ESIC.
- Lower legal costs and operational stress.
New ESI Amnesty Scheme 2025 for Settlement of Court Cases